This makes for alarming reading and should be ringing warning bells, even if you don’t want to read or hear anymore about the corona virus. Who has even thought of these consequences? I hope like heck that Pharmac has a risk management plan ….
Peter has struck out on his own as an independent treasury advisor, and is managing director of his company ITAL. This is from his web site “The economic butterfly effect”
The COVID-19 coronavirus has become the dominant global news story and the prime driver of financial markets’ sentiment, volatility and direction. Only recently, have some of the short and long term effects been examined. I’m writing about some of the potentially dire consequences yet to be mentioned in mainstream media.
For some time, media have been reporting the number of people in China in isolation (quarantine) by official order. People stuck indoors are unable to turn up to work or go out and spend. Factories in China are running at well below capacity, if at all. There is also a shortage of truck drivers, port workers and officials to process both exports out of and imports into China. All of this adds up to a threat to key global supply chains, manufacturing capacity and household consumption.
Not only is China the world’s most populous and number one export nation but…
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